United States

FASB Changes Accounting for Equity Investments and Financial Liabilities

Jan 06, 2016
From the Financial Reporting View

This edition of Defining Issues reports that the FASB issued a new accounting standard that will significantly change the income statement impact of equity investments held by an entity, and the recognition of changes in fair value of financial liabilities when the fair value option is elected.

For financial statements that have not yet been issued, certain entities may immediately adopt two provisions of the standard:

  • Entities may early adopt the provisions related to the recognition of changes in fair value of financial liabilities for which the fair value option has been elected; and
  • Entities that are not public business entities may early adopt the provisions of the standard that eliminate certain previously required fair value disclosures.

Read FASB Changes Accounting for Equity Investments and Financial Liabilities